How advisors can help clients right now

Each day’s news around COVID-19 market volatility can lead to financial anxiety for you and your clients - here's how to navigate it

Steve Wendel 17 March, 2020 | 1:25AM

Man looking out of window

After headlines noting “the biggest daily stock market drop in oil prices since the Gulf War” and “the S&P 500 ETF’s third-worst opening in history,” it’s only natural for investors to fear what comes next. And given how our minds judge probability and forecast the future, it’s understandable to want to pull out of funds.

It can be easier to successfully navigate moments like this if you understand the particular causes of investors’ financial anxiety. Instead of asking yourself if a client is doing the right thing, it’s more fruitful to ask, “Why do they want to do this?”

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About Author

Steve Wendel

Steve Wendel  Steve Wendel is head of behavioral science for Morningstar, where he leads a team of behavioral scientists and practitioners who conduct original research to help people invest and manage their money more effectively.

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